Building brand loyalty: marketers use both travel and merchandise to hold customers

Article Abstract:

Marketers are realizing the benefits of offering rewards to customers loyal to a brand. These premiums or incentives usually come in the form of free travel or merchandise, which are earned through a point system based on frequency of purchase. Such approach have enabled marketers to minimize switches to other brands and encourage brand loyalty. Travel rewards are perceived by consumers as more valuable, but merchandise-based premiums are also attractive because of the shorter time it takes to accumulate points. Some of the most successful loyalty programs are the 'Pepsi Stuff' campaign and McDonald's Happy Meals.

Evaluation, Brand choice

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Speeding the reward process: desire for instant gratification drives new promotions

Article Abstract:

The popularity of promotions providing immediate gratification has spawned customer reward programs that allow instant delivery of prizes and incentives. Aside from discounts and promotions at the point-of-sale, an increasing number of supermarket retailers are providing their customers with incentives even prior to their purchase. This growing retailer network is taking advantage of the fact that most purchase decisions are made at the store by offering incentives even before the decision process. More and more businesses are also using brand names as premiums and motivational tools.

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Loyal shoppers can score by using in-store kiosks

Article Abstract:

A system of ATM-style kiosks found at the entrances of supermarkets, called the Inter-Act Loyalty Network, offers shoppers coupon deals from manufacturers, store coupons and other promotional offers based on their previous purchase behavior. Shoppers choose from more than three dozen coupons on the touch-screens and print out their choices using the unit's thermal printer. Redemption of Inter-Act coupons is at an average of 35%, with kiosk users spending an average of $71 per store visit. Marketers benefit from the system since there are no distribution charges and inefficiencies.

Methods, Usage, Kiosks

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